A.M. Best Affirms Ratings of Omega Specialty Insurance Company Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a-" of Omega Specialty Insurance Company Limited (Bermuda) (OSIL). The outlook for both ratings remains stable. In A.M. Best's opinion, OSIL's risk-adjusted capitalisation is likely to remain excellent in 2008 and 2009, supported by increasing retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . Additionally, OSIL benefits from the financial flexibility of its parent, Omega Insurance Holdings Limited (OIH OIH Office of International Health OIH Ohio Industries for the Handicapped, Inc. ), which has demonstrated its ability to raise funds to support the group's growth. OSIL's financial flexibility is further enhanced by a comprehensive reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. programme that limits its exposure to major losses. A.M. Best anticipates a solid profit before tax above the GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 45 million achieved in 2007, despite deteriorating premium rates in a number of the company's business lines. The increase in profit is likely to be driven by premium growth in business derived from outside the Omega group and OSIL's new 50% whole account quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). reinsurance of Omega US Insurance, Inc (a wholly owned surplus lines subsidiary of OIH), which is likely to represent 10% of OSIL's gross written premium in 2008. Underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. performance is likely to be supported by the underwriting discipline and solid risk control infrastructure in place throughout the Omega group. Furthermore, a change in the pace at which premiums are earned due to the impact of the new energy account written from March 2007 (through its quota share participation with Lloyd's Syndicate 958), and due to growth of the non-marine binder business (written through its quota share participation with Omega U.S.), is expected to result in higher earnings in 2008. Investment income is likely to fall, owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de lower US interest rates. Further ahead, A.M. Best believes OSIL's conformity with the group's conservative reserving and reinsurance strategy will support solid operating performance. A.M. Best believes that OSIL will continue to benefit from the strong market profile of OIH and Lloyd's Syndicate 958 (managed by Omega Underwriting Agents Limited), through its reinsurance arrangements with OIH's insurance operations. Most of the company's business in 2008 is likely to be associated with syndicate 958's underwriting (approximately 80% of gross written premium), through the reinsurance of Omega Dedicated Limited (OIH's corporate member at Lloyd's) and a 20% whole account quota share reinsurance arrangement with the syndicate. The percentage of US business within the portfolio is likely to increase in 2008 due to the 50% whole account quota share of Omega US Insurance, Inc. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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